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By ALM Staff | Law Journal Newsletters |
April 26, 2006

Companywide layoffs don't immunize an employer
from age discrimination suits

The Third Circuit has ruled that where an employee is able to demonstrate 'implausibilities and inconsistencies' in an employer's justification for his or her layoff, the employer is not entitled to summary judgment in an age discrimination suit, even if the plaintiff's layoff resulted from an overall reduction in force (RIF) and the employer was able to identify certain 'age neutral' determination criteria. Tomasso v. The Boeing Company, No. 04-4657 (April 19).

The plaintiff, an employee with almost 40 years of service, was notified of a possible layoff due to a 20% RIF the company was instituting at his job site. Although he was offered an hourly position, the plaintiff refused, calling the offer a major demotion and 'a slap in the face.' The plaintiff was later laid off at age 59. In his federal age discrimination suit, the plaintiff noted that all of the employees in his department who were selected for layoff were over the age of 40. Further, the plaintiff also disputed the employer's additional factual basis for his layoff. Nevertheless, the district court granted the employer's motion for summary judgment. The appeals court reversed.

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